What is the difference between doing foreign trade and e commerce

What is the difference between foreign trade e-commerce and cross-border e-commerce, and what is the difference in taxation?

Nowadays, many people confuse traditional foreign trade e-commerce and new cross-border e-commerce, so what is the difference between the two?

What is the difference between foreign trade e-commerce and cross-border e-commerce:

Different taxes: foreign trade e-commerce is mainly a traditional general, involving very complex tariffs, value-added tax, and consumption tax; However, the taxation faced by cross-border e-commerce is very simple.

The main body is different: in the era of foreign trade e-commerce, foreign trade enterprises only use e-commerce means to promote themselves and their products, and look for foreign business purchase information from the Internet, etc., and the main body is information flow; In the era of cross-border e-commerce, people are trying to use the Internet to sell goods directly to overseas consumers, and the main body is commodity flow.

Different links: In foreign trade e-commerce, the import and export links have not been shortened or changed; Cross-border e-commerce requires that various links be minimized and shortened to minimize intermediate costs.

Different models: the basic model of foreign trade e-commerce is B2B; The mainstream model of cross-border e-commerce is B2C. So cross-border e-commerce is indeed not equal to foreign trade e-commerce, cross-border e-commerce reflects a new type of operation mode that is very different from traditional foreign trade e-commerce; It's just that cross-border e-commerce also includes foreign trade e-commerce.

Traditional foreign trade mainly concentrates on large quantities of goods, and then passes through multi-level distributors through overseas circulation enterprises, and finally reaches enterprises or consumers in demand, but cross-border e-commerce is a distributor that uses the platform to face consumers directly and cross the layers of distributors. If the landlord is engaged in the foreign trade industry, the traditional foreign trade industry is a large order, and the e-commerce industry is doing retail, similar to the domestic **Tmall.

1. The direction of the main body is different

In the foreign trade market, enterprises expand overseas markets through information channels, promote their goods and services, and attract foreign businessmen. Therefore, from the point of view of communication methods, foreign trade belongs to the flow of information.

On cross-border platforms, merchants directly publish product information through the platform or self-built sites to complete commodity transactions. From this point of view, cross-border e-commerce is taking the flow of goods.

2. The import and export links are different

In the foreign trade market, since all commodities are bulk commodities, time and cost enterprises obviously will not consider optimization in import and export links.

In cross-border e-commerce, the time and cost of transportation will affect the final transaction and profit of the goods. As a result, businesses reduce costs and increase efficiency as much as possible.

3. Online transactions are different from offline transactions

In the external **, the transaction double transaction method is offline, or the transaction cannot be carried out through the third-party payment platform.

In cross-border e-commerce, the transaction model of both parties depends on the platform, and the payment also requires the intervention of a third-party payment platform.

1. The direction of the main body is different

In the foreign trade market, enterprises expand overseas markets through information channels to promote their goods and services to attract foreign businesses, so from the perspective of communication methods, foreign trade belongs to information flow.

On the cross-border platform, merchants directly release commodity information through channels such as platforms or self-built stations, in order to complete commodity transactions, and from this point of view, cross-border e-commerce is a commodity flow.

2. The import and export links are different

In the foreign trade market, because they are all bulk commodities, in places such as import and export links, time and cost enterprises will not obviously consider optimization.

In cross-border e-commerce, both the time and cost of transportation will affect the final transaction and profit of the goods, so merchants should compliment these links, try to reduce costs, and try to improve efficiency.

3. Online transactions are different from offline transactions

In foreign trade, the transaction method is offline, or the transaction is not connected to the third-party payment platform.

In cross-border e-commerce, the transaction method between the two parties to the transaction depends on the platform, and the payment also needs to be intervened by a third-party payment platform.

4. Taxes are different:

Because foreign trade often involves large transactions, it is more complicated to review and declare taxes at the customs, not only involving value-added tax but also consumption tax.

Cross-border e-commerce, as a merchant-faced individual transaction method, is simpler in terms of taxation, and sometimes you may only involve a personal postal mail tax.

5. Different business models:

The basic model of foreign trade is the B2B direction, which is the product of the initial stage of globalization.

The mainstream model of cross-border e-commerce is B2C, which is the inevitable result of the development of globalization. Cross-border e-commerce has broken the operation model of traditional foreign trade and foreign trade e-commerce, but now the boundary between cross-border e-commerce and foreign trade is becoming more and more blurred.

Cross-border e-commerce is a combination of e-commerce and foreign trade, but cross-border e-commerce is the direct development of consumers, is the terminal of the terminal, the core of traditional foreign trade is the product, and all sales skills are revolving around the product. Of course, the core of cross-border e-commerce is also products. The hot-selling attributes of a product and how to iterate on the product are all based on the product.

The more you understand the cost of the product and the upstream and downstream chain of the product, the better you can grasp the market, and the more conducive it is to develop retail end customers.

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In traditional foreign trade, some enterprises promote their products by means of sales, and look for foreign businessmen's purchase information from the Internet, so the main body is information flow; For cross-border e-commerce, general merchants use the Internet to sell goods directly overseas, so the main body is commodity flow.

2. The links are different

In order to reduce intermediate costs, cross-border e-commerce will try its best to reduce or change the import and export links, such as B2C and M2C models.

3. The form is not the same

4. The mode is not the same

The basic model of foreign trade e-commerce is B2B, while the operation model of cross-border e-commerce is B2C such as AliExpress and Amazon, and M2C has also been developing in recent years, such as Tobox.

5. The efficiency is not the same

Cross-border e-commerce is not equal to foreign trade, it is very different from the traditional foreign trade operation model, but foreign trade includes cross-border e-commerce. Compared with the traditional cross-border**, cross-border electric fans have their incomparable advantages.

Most of the traditional cross-border goods are imported and exported by importers in one country through importers in another country, and then through multi-level distribution through domestic circulation enterprises, and finally reach enterprises or consumers in demand. There are many import and export links, long time and high cost, and the emergence of cross-border e-commerce, facing the final consumer, greatly reduces the cost of enterprises going abroad.

As long as overseas buyers or individual buyers place orders on the platform, a strong logistics system can make the goods reach the buyers within 1-2 weeks, and the overseas warehouse stocking mode can be delivered in two to three days at the earliest.

Ask questions about competing products (QQ**, NetEase Cloud**, Kugou**).

1) What are the target users of competing products, and what are the differences?

2) What are the core advantages of competing products?

3) What are the similarities or differences between the operating models of competing products?

AnswerSo, what are the characteristics of QQ? Whether in the eyes of investors or **, it is a platform with a "huge number of users and complete copyright content", and to put it bluntly, it is to win by quantity. On social networks, you will often see remarks such as "QQ** is to win by copyright" and "If it weren't for massive copyrights, would anyone use QQ**".

The biggest difference between the two is that the main body is different, the links are different, and the form is different!

Cross-border e-commerce is an online transaction.

Traditional foreign trade is traded offline.

Cross-border e-commerce can be simply understood as the cross-border combination of domestic e-commerce and traditional foreign trade, which is very different from multiple perspectives such as cost, platform, audience, difficulty, operational efficiency, and profit.

Traditional foreign trade** mainly concentrates on large quantities of goods, and then through overseas circulation enterprises through multi-level distribution, and finally reaches enterprises or consumers in demand. Cross-border e-commerce directly faces end consumers, reducing the cost of enterprises going abroad.

The initial cargo capital of cross-border e-commerce is at the level of 1,000 yuan, and the minimum of traditional foreign trade is also at the level of 100,000 yuan.

There are many import and export links, from the local ** part of the import and export license, the goods arrive at the customs need to declare a series of cumbersome operations, and cross-border e-commerce and domestic e-commerce operations, can be directly sent to consumers by direct mail, simplifying the operation process.

The number of import and export links naturally leads to a long time for the overall project, which is basically calculated in months, and cross-border e-commerce uses the slowest logistics from receiving orders to delivering to consumers, which is about two weeks.

Traditional foreign trade uses mostly wholesale platforms, and there are some proven methods such as email marketing, multilingual** marketing, and exhibition marketing for sales. Cross-border e-commerce is relatively simple, Amazon, eBay, wish and other cross-border e-commerce platforms provide a very large amount of traffic.

The target customers of traditional foreign trade are mainly overseas dealers, mostly corporate users, while cross-border e-commerce is basically overseas small sellers and individual users.

At most, everyone is very concerned about the profit, the traditional foreign trade entry threshold is high, the unit price is low, the order volume is large, and the final profit is very considerable. It is suitable for team-based operations with resources. The entry threshold of cross-border e-commerce is low, the unit price is high, the order volume is small, and the final profit needs to last until a certain amount to have a large profit income, which is very suitable for individual sellers.

Here you can cite the example of cross-border e-commerce in the United States, domestic goods of 5 yuan, through the cross-border e-commerce platform, can be sold in the United States for 10-20 US dollars, excluding logistics and other costs, there will also be a profit of 5-10 US dollars, the profit is very considerable.

The main differences between overseas** and cross-border e-commerce include:

1. Whether to pay taxes. Overseas ** does not pay taxes, which is actually a kind of tax evasion; Cross-border e-commerce pays taxes in accordance with the law, which is encouraged and supported by national policies.

2. Business entity. The subject of overseas ** is generally an individual, while the subject of cross-border e-commerce is a company.

3. Business scope. In addition to the B2C (business-to-consumer) business corresponding to overseas**, cross-border e-commerce also has B2B (business-to-business) business.

Foreign trade e-commerce is the use of B2B to carry out the international first-class, typical B2B platforms are: Alibaba, Made-in-China, Global Sources, ECVV, this model is more mature, but also one of the ways that enterprises use more in foreign trade e-commerce, this model is characterized by relatively high input costs, more inquiries, and more concentrated buyers.

Advantages of foreign trade e-commerce:

1. E-commerce will be electronic and digital traditional business processes, on the one hand, electronic flow replaces physical logistics, which can greatly reduce manpower and material resources and reduce costs; On the other hand, it breaks through the limitations of time and space, so that trading activities can be carried out at any time and anywhere, thus greatly improving efficiency.

3. E-commerce enables enterprises to enter the global electronic market at a similar cost, making it possible for small and medium-sized enterprises to have the same information resources as large enterprises, and improving the competitiveness of small and medium-sized enterprises.

4. E-commerce redefines the traditional circulation model, reduces intermediate links, and makes direct transactions between producers and consumers possible, thus changing the way the entire social economy operates to a certain extent.

5. On the one hand, e-commerce breaks the barriers of time and space, and on the other hand, it provides rich information resources, providing more possibilities for the recombination of various social and economic factors, which will affect the economic layout and structure of the society.

6. Through the Internet, businesses can directly communicate, negotiate and sign contracts, and consumers can also reflect their feedback and suggestions to the enterprise or business, and the enterprise or business should investigate the product type and service quality in a timely manner according to the feedback of consumers, so as to achieve benign interaction.

1. The cost is not the same, traditional foreign trade should concentrate on large quantities of goods, while cross-border e-commerce directly faces Tongchun high to the end consumer, so the cost will be much lower. 2. There are many operations in foreign trade, including export licenses, customs, etc., and cross-border e-commerce can use direct mail to send directly to consumers. 3. There are many import and export links in different times, a project is generally more than a month, and cross-border e-commerce is generally two weeks after receiving the order to delivering it to the consumer.